Essays Tagged: "Profit (economics)"
Why is monopoly 'harmful? How can regulation ameliorate these harmful effects? What problems confront the regulators?
maximum possible utility for their purchases.Monopolies are criticised for their high prices, high profits and insensitivity to the public. Some governments therefore, in the light of these protests, ... t run and the long run.Consider the diagram above. Assume that this monopolist attempts to maximise profits. Equating MC=MR yields an output of Qm and a price of Pm. If the same industry existed under ...
Subjects: Social Science Essays > Economics
What are the assumptions behind the model of a perfectly competitive industry in long-run equilibrium?
oduct, causing the producer with the higher price to loose popularity, and decreasing the amount of profit that they will receive. It then will eventually not be attractive to remain in the market for ... un equilibrium in perfect competition there will be an optimal level of efficiency and where normal profits are achieved.The assumptions behind the long run equilibrium in perfect competition are: fre ...
Subjects: Social Science Essays > Economics
Perfect and Monopoly Markets and their difference
rm can enter the market and the present sellers can't stop that firm from entering.6.No supernormal profits: - In long run no firm can earn supernormal profit as illustrated in figure B below.If a fir ... o firm can earn supernormal profit as illustrated in figure B below.If a firm is making supernormal profit then new firms will enter the industry or the existing firms would increase their output or b ...
Subjects: Businesss Research Papers > Management
The use of marginal costing techniques for managerial decision making ignores important commercial factors. Discuss this statement including relevant examples to support your argument.
tribution is the amount of money available to cover the fixed costs and afterwards to contribute to profit. The fixed costs are treated as period costs and are expensed in the period incurred.Marginal ... costing mainly concentrates on financial factors, for instance the company's objective to maximise profit or to create wealth. But other non-financial or commercial implications with long term charac ...
Subjects: Businesss Research Papers > Accounting
A critical review against Dunning's Eclectic Theory
d similar contracts with independent firms.3. Assuming conditions 1 and 2 are satisfied, it must be profitable for the enterprise to utilize these advantages in conjunction with at least some factor i ... vis-a-vis the firm. The advantage is understood from the viewpoint of economic competitiveness and profitability, and thus it takes the form of an economic asset whether tangible or intangible. Thus, ...
Subjects: Businesss Research Papers
Monopolistic competition and economic efficiency.
es. One can not predict or expect either producers' or consumers' behaviour without knowing general profit and utility maximising notions and conditions. The structure of a market provides this inform ... of the monopolist's demand curve. It does this through price discrimination. Let us now discuss the profit maximising conditions and the appropriate price-output decision in the short and long runs.Pr ...
Subjects: Social Science Essays > Economics
Goverment policy and perfect competetion
nce on the market price. They can only accept the prevailing market price. In order to maximise its profit, the firm will produce at a quantity where marginal cost equals marginal revenue, i.e. the pr ... gh in the short run, if the price is higher or lower than average cost, there will be a supernormal profit or an economic loss accordingly, because of complete freedom of costless entry and exit for f ...
Subjects: Social Science Essays > Economics
Is dreamworld exist in a perfect competition environment
These expenditures can shit the demand curve to the right to charge higher prices and earn economic profits. For example, Dreamworld is one of the biggest theme park in Australia. It spends millions o ... in demand, and then the demand curve shifts to right, the price can also increase, it provide more profits for the Dreamworld. Another strategy for Dreamworld is target marketing strategy; in this ca ...
Subjects: Businesss Research Papers
Notes for a freshmen college microeconomics course.
ietorships (over 13 million, 74.3%)Advantages:1. Easy to organize2. The owner is his own boss3. All profits go to the ownerDisadvantages:1. Unlimited liability2. Limited financial resources3. Owner is ... ol.Disadvantages:1. Legally more complex.2. Principal-agent problem.3. Double taxation of corporate profits.II. Methods of Corporate FinancingA. Share of Stock (ownership)Legal claim to a share of the ...
Subjects: Social Science Essays > Economics
Perfect and imperfect competition.
gh output at a lower price (Sloman J. 2003).Oligopolists, like Maxis, use part of their supernormal profit for research and development. Unlike monopolists, however, oligopolists will have a considera ...
Subjects: Businesss Research Papers
"Monopoly is against the interest of the consumer." To what extent do you agree with this statement and why?
ct that the monopolist holds down output and maintains a high price enables him to make supernormal profits that he can sustain as no other firms can enter the industry.A monopoly is a situation where ... there are artificial monopolies, which are deliberately created by firms in order to make abnormal profits (surplus earnings to normal profit) such as takeovers, amalgamations, or cartels.The downwar ...
Subjects: Social Science Essays > Economics
What is monopolistic competition?
xist are few. These entry barriers allow real world firms to get and maintain above normal economic profit. The amount of information characteristic basically means that all firms operate on the same ...
Subjects: Businesss Research Papers
Buisness plan
right consumerYou need to be aware of the market that will pose less risk and are likely to show a profit to your business. That is whom you should target. If you have identified your customer and li ... e.PriceThe price can be set up with one of two attitudes. You can either set high prices aiming for profit, or lower prices can be set to aim for high sales. Compare prices with your competitors for s ...
Subjects: Businesss Research Papers
To what extent do barriers to entry affect the profitability in an industry?
The barriers to entry has a heavy affect on the profitability of a business overall. It has two visible effects on profitability- one it may be the ... the barrier to entry take full effect or the lack of barrier to entry take full effect.The term of profitability is a comparative concept used to compare the short term with the long run or the marke ... t used to compare the short term with the long run or the markets with few firm or small firms? The profit is the revenue- cost.Barriers to entry might affect the profitability through the costs. Barr ...
Subjects: Social Science Essays > Economics
Cost-Leadership Strategy
rket share dans sales volume. At this competitive price, the cost-leader firm earns an above-normal profit. 2. The low-cost firm can price its goods or services below the prices of its high-cost rival ... l attract numerous customers and increase its market share and sales volume but the cost is a lower profit earned. This strategy sends a signal to competitors that lower costs are possible. Such a sig ...
Subjects: Businesss Research Papers
The privatisation of the uk el
in the production of electricity.By privatising, the government hoped that the incentive of higher profits would act as a reward for efficiency, meaning that more effort would be made in research and ... cts ( thus giving relatively inelastic price elasticity of demand) 3. The monopolist is a short run profit maximizer 4. There are barriers to entry to prevent new firms entering the market The monopol ...
Subjects: Social Science Essays > Economics
Economics
a market of greater competition. As of now, this oligopolistic market structure is earning economic profit because of its? imperfect competition. Lack of substitutes for their goods allows oligopolies ... tition, while still imperfect, would lower business revenues of the preexisting firms from economic profit to merely a profit of normality, I believe.In class and in the text, we have discusses the be ...
Subjects: Businesss Research Papers > Case Studies
Outsource Inc Case
nce.A1: Economic Value added (EVA) is a financial performance method to calculate the true economic profit of a corporation. EVA can be calculated as Net Operating Profit After Tax minus a charge for ... ccounting and financial reporting systems of companies (as does ROCE).Disadvantages•Accounting profits and book asset values may be unreliable/irrelevant (as for ROCE).•Fails to solve short- ...
Subjects: Businesss Research Papers > Case Studies
Are Socially Responsible Corporations More Profitable?
rther investment into CSR undermines corporation fiduciary responsibility to shareholders: ensuring profit maximization. The question then becomes, do firms that implement CSR into their business mode ... oregoing capital) realize incremental value relative to those firms that choose not to expend their profits on CSR initiatives? Further, can this value be translated into tangible financial metrics th ...
Subjects: Businesss Research Papers
Maximizing Profits in Market Structures
Maximizing Profits in Market Structures � PAGE �1� Market Structures � PAGE � ... 3; Market StructuresMike VoelkerXECO/212February 28, 2010Darryle ParkerMarket StructuresTo maximize profits in a competitive market, monopolies, and oligopolies markets have many different strategies. ... by finding where the marginal cost meets marginal revenue. This is the perfect balance to maximize profits in a competitive market. Companies of a competitive market follow the set price that the mar ...
Subjects: Social Science Essays > Economics